Since the agent represents the persona of the company, principles should selectively hire agents that can best represent their agenda. This relationship can be ideal when the agent is an expert in the field and displays allegiance to the principle. However, if overall goals aren’t uniformed then problems can arise. In order to minimize misunderstandings, informal or formal contracts, that explain what is expected of the agent, should be given to the agent and firmly enforced. The principle should ensure that vital language is inserted in the agreement to protect and promote the principle’s agenda.
For corporations, which are your larger principles, human resource managers should be hired to maximize employee output. Authors David E Dimick and Victor V. Murray (1978: 611) in their article “Correlates of Substantive Policy Decisions in Organizations: The Case of Human Resource Management” defines human resource managers as personnel management which facilitate various organizational objectives. One responsibility of the human resource manager is the implementation of personnel practices that fit the specific needs of the employer. The human resource managers are directly responsible for the hiring of most qualified employees that display the most appropriate levels of capabilities. Thus the human resource manager should act in the best interest of the principle and formulate agency policy that benefits the behalf of the principle.
Since human resource managers act as intermediaries between the corporate principle and agent, they should have in-depth knowledge of specific task demands. Knowing what is needed to ensure flow of operations, human resource managers should modify agency policy to include clear language to the agent of the expectations to their duties and expectations of the principle. According to the authors Lee G. Bolman and Terrence E. Deal